Question

Journalise the following transactions in the books of Poonam Ltd.:

200 shares of ₹10 each issued at a premium of ₹5 each payable with allotment were forfeited for the non payment of allotment money of ₹8 per share including premium. The first and final call on these shares at ₹3 per share was not made. The forfeited shares were re-issued @ ₹12 per share fully paid up.

Answer 1

Journal entries In the books of Poonam Ltd.
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
1.	Share Capital A/c (₹5 × 200)     ...Dr.		1,000
	Securities Premium A/c (₹3 × 200)     ...Dr.		600
	To Share Allotment A/c			1,600
	(Being 200 shares forfeited for non-payment of allotment money including premium; only application money received)
2.	Bank A/c     ...Dr.		2,400
	To Share Capital A/c			2,000
	To Securities Premium A/c (₹2 × 200)			400
	(Being 200 forfeited shares reissued at ₹12 each as fully paid up including ₹2 premium)
3.	Share Forfeiture A/c     ...Dr.		800
	To Capital Reserve A/c			800
	(Being balance of forfeiture transferred to capital reserve)